The CSI300 index fell 0.7 percent, to 4,138.65 points at the end of the morning session, while the Shanghai Composite Index lost 0.4 percent, to 4,000.79 points.

There were signs of growing investor caution, as the Shanghai index has bounced nearly 20 percent from a seven-year low hit on July 9, and is approaching 4,500 — a level widely seen both as a government target, and a near-term ceiling.

With the market stabilizing, investors have returned their focus to economic conditions, and corporate profit growth.

Giving a reminder that China’s economy has yet to find its feet, the Ministry of Industry and Information Technology warned on Wednesday that industry still faces significant downward pressure and “arduous efforts” are needed to stabilise the economy.

The ministry also said that firms in some industries were facing increasing difficulties in making profits.

Most sectors fell, with real estate and infrastructure stocks among the biggest losers.

But technology and telecommunications shares were generally firmer.

Although the main indexes fell, 1,235 companies rose, outnumbering decliners, which totalled 1,047.